Unexplained expenditure - certain entries were found unmatched / ...

Tribunal Partially Allows Appeal, Imposes 25% Disallowance Due to Inadequate Documentation of Unmatched Expenses.

March 11, 2024

Case Laws     Income Tax     AT

Unexplained expenditure - certain entries were found unmatched / not accounted for in the books of accounts in the expense ledger of the assessee - The assessee contended that the expenses were accounted for but not individually, and were incurred by employees at respective sites, later reimbursed by the assessee. However, the Tribunal (ITAT) found the explanation insufficient, emphasizing the need for proper documentation and evidence. While partially allowing the appeal, the tribunal imposed a restricted disallowance of 25% of the amount determined by the AO.

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